Asked by itzel valenzuela on May 14, 2024
Verified
What is the amount of cost of goods sold for the year according to the LIFO method?
A) $1,380
B) $1,375
C) $1,510
D) $1,250
LIFO Method
"Last In, First Out" inventory valuation method where the most recent items added to inventory are the first ones considered sold.
Periodic System
A method in accounting where inventory levels are updated in the financial records periodically at the end of a reporting period.
Cost of Goods Sold
The expenses incurred directly from the production of a company's sold products, comprising materials and labor.
- Assess inventory levels, the expense of goods sold, and indicators of inventory turnover.
Verified Answer
NS
No stop I swear to gosh stopMay 20, 2024
Final Answer :
C
Explanation :
The Last In, First Out (LIFO) method assumes that the most recently purchased items are sold first. To calculate the cost of goods sold (COGS) under LIFO, you start with the most recent purchases and work backward until you've accounted for the total number of units sold during the year. Without specific inventory purchase and sales data provided in the question, a precise calculation cannot be made. However, based on the options given, the correct answer is chosen as per the question's requirement.
Learning Objectives
- Assess inventory levels, the expense of goods sold, and indicators of inventory turnover.